Managers – would you pay your team members more than you?

 

I had a chat with a client a few weeks ago regarding a recruitment process we were handling for him. We were chatting generally about the market and how salaries seemed to be on the up for roles he had been looking to fill.

Me: ‘I spoke with someone yesterday who is brilliant but he’d want £X for a move’.

Client: ‘No chance, he’d be getting paid more than me’.

 

This got me thinking – is there a benefit to Managers paying some or all of their team more than themselves?

Now there are a lot of variables here but let’s say that a certain individual/s would solve the problems the Manager needs solving and enhance the overall team.

You can also assume that the increased payments would fit into your teams’ budgets.

If that was the case, would you do it?

As a Manager, in many instances, your goal is to lead your team to meet certain objectives. You are judged on the ability to reach set targets, complete projects etc. etc.

The best teams have the best staff. If paying people more than you meant you had a team capable of meeting your objectives, saving you time and making your life easier – what is the issue?

 

Ego can be the enemy

Society has a way of judging a person’s seniority based on what they earn.

Rightly or wrongly it can be tough for us to accept paying someone in a ‘lesser’ position more than what we take home, given the added responsibility that goes with a higher level role.

But what if we put ego to one side? What if you paid for the best and got a few extra hours of sleep per night not having to worry about meeting those deadlines or panicking about if a project was going to be completed to client satisfaction?

After all, how many football managers get paid more than the best player on their team? Those players give the team more chance of success and they come with a premium.

 

Is it worth it?

 You sit down with your boss during your year review. Are they going to be more bothered about who is paid what in your team or that you, as the Manager, have achieved what you were told to achieve?

Manager: ‘We didn’t meet our targets but we came in way under budget because I didn’t spend a lot on team salaries’.

Nice try. There’s the door.

In the opposite scenario you explain you kept your budgets in check or went slightly over, met/exceeded targets due to the brilliant individuals you have identified and retained in the business and the company will be in a great place going into the next quarter.

How do you think your boss would react to that?

 

Short-term ‘pain’ and long-term gain

 We all want to progress our career. As a Manager you’ll be eyeing that next step within your business or even looking at the next company you’d like to work for.

 What if the short-term ‘pain’ of having to pay the new recruit more than you lead to that promotion you have been angling for? Or what if it resulted in a CV enhancing achievement that made competitor hiring managers sit up and take note?

All of a sudden you get a pay-rise, a bigger job and you’ve progressed your career.

Of course there are many reasons why you wouldn’t pay a team member more than you. There is the potential for creating jealousy amongst colleagues who are not paid as well as their counterparts or you being seen as having your ‘favourites’.

But surely good Managers can handle those types of situations…

 

Very interested to hear people’s views on this.